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Important Time-Sensitive Incentive for Buyers Considering an Acquisition Now

If you are considering a business acquisition, the recently-passed CARES Act contains an important benefit you may not have heard about.  It has not received a lot of publicity. The Act provides for a special subsidy for all outstanding Section 7(a) loans from the SBA.  It covers loans existing when the bill became law and also loans made within six months after it became law. This is a significant benefit.  For example, for a $1,000,000 loan with a seven-year maturity, it would represent a subsidy of over $86,000.  For a five year $1,000,000, the benefit would be over $114,000.  This … Read more

Dwyer Group Changes Name to Neighborly

Neoghborly

Dwyer Group, the franchise company behind The Grounds Guys in the U.S. and Canada and Countrywide Grounds Management in the U.K. has changed its corporate name to Neighborly, effective immediately. Here is the press release announcing the name change. WACO, Texas (September 19, 2018) – Dwyer Franchising, LLC (“Dwyer Group”), one of the world’s largest parent companies of home service brands, has announced that it is changing its corporate name to Neighborly, effective immediately. The decision follows the rapid success of the consumer-facing Neighborly platform developed a little more than a year ago to unite all of its service franchise brands … Read more

PCT Virtual M&A Conference

Ron Edmonds of The Principium Group will be presenting at Pest Control Technology’s Virtual M&A Conference on August 22, 2018. This conference includes several speakers among the leaders in pest control mergers & acquisitions, including our friend Dan Gordon of Turf Books, Pest Books and PCO Mergers & Acquisitions, Kemp Anderson and three pest control business owners who have been through the process of selling their business. For more information or to register for this event, click here.

Private Equity Firms Focusing on Add-on Acquisitions

Mergers

Private equity firms are increasingly focusing on so-called add-on or bolt-on acquisitions, acquisitions that are added to existing “platform investments”.  According to Pitchbook, a service that tracks private equity transactions, in the third quarter of 2014, 61% of all private equity investments were add-on transactions compared to 57% in 2013 and  49% n 2012. Traditionally, private equity firms are thought of as “financial buyers”, but increasingly act more like “strategic buyers” when they focus on add-on acquisitions. This trend may have several causes.  First, the current deal environment is competitive, especially for platform investments.  The competition level may be somewhat … Read more